Bicycle sales hamper Shimano group’s 2016 performance

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Shimano reported a 14.7% drop in sales in 2016, driven by the performance of its bicycle division.

The Shimano group has reported a 14.7% decrease in profits in 2016, driven mainly by a double digit drop in the performance of its bicycle components division.

The Japanese company saw a slight decrease of 1.7% in its fishing tackle net sales to 63,143 million yen, as it announced net overall sales of 322,988 million yen compared to 378,645 million yen in 2015.

The company said that the Japanese fishing market remained buoyant thanks to relatively stable weather from the beginning of the year to mid-August. “Despite the temporary negative effects of the Kumamoto earthquakes and typhoons on the fishing environment, sales exceeded the levels of the previous year,” it reported.

Overseas, sales in Asia were also up on 2015, bolstered by increased orders from the east of the region, as were sales in Australia.

However, the group described sales in North American and Europe as sluggish.

It added: “During 2016 the European economies were on a moderate recovery trajectory as personal buying remained brisk and exports started to recover despite pessimism following the result of the referendum vote in favour of Brexit in the UK.

“In the US a moderate economic recovery continued thanks to robust consumption, supported by a steadily improving labour market.”